ASTI - Advanced Science and Technology Institute
Financial Plan
The following sections will outline important financial information.
7.1 Break-even Analysis
The following table shows what our break-even point will be to cover our montuhly costs.

Break-even Analysis | |
Monthly Revenue Break-even | $22,033 |
Assumptions: | |
Average Percent Variable Cost | 0% |
Estimated Monthly Fixed Cost | $22,033 |
7.2 Projected Surplus or Deficit
The following table will indicate projected surplus and deficit.

Surplus and Deficit | |||
Year 1 | Year 2 | Year 3 | |
Funding | $286,000 | $261,000 | $285,000 |
Direct Cost | $0 | $0 | $0 |
Other Production Expenses | $0 | $0 | $0 |
Total Direct Cost | $0 | $0 | $0 |
Gross Surplus | $286,000 | $261,000 | $285,000 |
Gross Surplus % | 100.00% | 100.00% | 100.00% |
Expenses | |||
Payroll | $144,000 | $157,000 | $168,000 |
Sales and Marketing and Other Expenses | $83,000 | $39,000 | $39,000 |
Depreciation | $0 | $0 | $0 |
Leased Equipment | $0 | $0 | $0 |
Utilities | $2,000 | $2,000 | $2,000 |
Insurance | $1,800 | $1,800 | $1,800 |
Rent | $12,000 | $12,000 | $12,000 |
Payroll Taxes | $21,600 | $23,550 | $25,200 |
Other | $0 | $0 | $0 |
Total Operating Expenses | $264,400 | $235,350 | $248,000 |
Surplus Before Interest and Taxes | $21,600 | $25,650 | $37,000 |
EBITDA | $21,600 | $25,650 | $37,000 |
Interest Expense | $0 | $0 | $0 |
Taxes Incurred | $0 | $0 | $0 |
Net Surplus | $21,600 | $25,650 | $37,000 |
Net Surplus/Funding | 7.55% | 9.83% | 12.98% |
7.3 Projected Cash Flow
The following table and chart illustrate the projected cash flow.

Pro Forma Cash Flow | |||
Year 1 | Year 2 | Year 3 | |
Cash Received | |||
Cash from Operations | |||
Cash Funding | $286,000 | $261,000 | $285,000 |
Subtotal Cash from Operations | $286,000 | $261,000 | $285,000 |
Additional Cash Received | |||
Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 |
New Other Liabilities (interest-free) | $0 | $0 | $0 |
New Long-term Liabilities | $0 | $0 | $0 |
Sales of Other Current Assets | $0 | $0 | $0 |
Sales of Long-term Assets | $0 | $0 | $0 |
New Investment Received | $0 | $0 | $0 |
Subtotal Cash Received | $286,000 | $261,000 | $285,000 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $144,000 | $157,000 | $168,000 |
Bill Payments | $110,701 | $81,609 | $79,864 |
Subtotal Spent on Operations | $254,701 | $238,609 | $247,864 |
Additional Cash Spent | |||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $0 | $0 | $0 |
Other Liabilities Principal Repayment | $0 | $0 | $0 |
Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
Purchase Other Current Assets | $0 | $0 | $0 |
Purchase Long-term Assets | $0 | $0 | $0 |
Dividends | $0 | $0 | $0 |
Subtotal Cash Spent | $254,701 | $238,609 | $247,864 |
Net Cash Flow | $31,299 | $22,391 | $37,136 |
Cash Balance | $185,499 | $207,890 | $245,025 |
7.4 Standard Ratios
The following table compares our standard ratios with the Standard Industry Code #8748, Other Management Consulting Services.
Ratio Analysis | ||||
Year 1 | Year 2 | Year 3 | Industry Profile | |
Funding Growth | 0.00% | -8.74% | 9.20% | 7.29% |
Percent of Total Assets | ||||
Other Current Assets | 0.00% | 0.00% | 0.00% | 51.87% |
Total Current Assets | 100.00% | 100.00% | 100.00% | 75.02% |
Long-term Assets | 0.00% | 0.00% | 0.00% | 24.98% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 5.23% | 3.10% | 2.68% | 31.06% |
Long-term Liabilities | 0.00% | 0.00% | 0.00% | 17.80% |
Total Liabilities | 5.23% | 3.10% | 2.68% | 48.86% |
Net Worth | 94.77% | 96.90% | 97.32% | 51.14% |
Percent of Funding | ||||
Funding | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Surplus | 100.00% | 100.00% | 100.00% | 100.00% |
Selling, General & Administrative Expenses | 92.45% | 90.17% | 87.02% | 74.84% |
Advertising Expenses | 10.49% | 11.49% | 10.53% | 1.60% |
Surplus Before Interest and Taxes | 7.55% | 9.83% | 12.98% | 2.61% |
Main Ratios | ||||
Current | 19.13 | 32.28 | 37.26 | 1.80 |
Quick | 19.13 | 32.28 | 37.26 | 1.49 |
Total Debt to Total Assets | 5.23% | 3.10% | 2.68% | 58.30% |
Pre-tax Return on Net Worth | 12.29% | 12.73% | 15.52% | 6.19% |
Pre-tax Return on Assets | 11.64% | 12.34% | 15.10% | 14.83% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Surplus Margin | 7.55% | 9.83% | 12.98% | n.a |
Return on Equity | 12.29% | 12.73% | 15.52% | n.a |
Activity Ratios | ||||
Accounts Payable Turnover | 12.41 | 12.17 | 12.17 | n.a |
Payment Days | 27 | 38 | 30 | n.a |
Total Asset Turnover | 1.54 | 1.26 | 1.16 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 0.06 | 0.03 | 0.03 | n.a |
Current Liab. to Liab. | 1.00 | 1.00 | 1.00 | n.a |
Liquidity Ratios | ||||
Net Working Capital | $175,800 | $201,450 | $238,450 | n.a |
Interest Coverage | 0.00 | 0.00 | 0.00 | n.a |
Additional Ratios | ||||
Assets to Funding | 0.65 | 0.80 | 0.86 | n.a |
Current Debt/Total Assets | 5% | 3% | 3% | n.a |
Acid Test | 19.13 | 32.28 | 37.26 | n.a |
Funding/Net Worth | 1.63 | 1.30 | 1.20 | n.a |
Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |